Identify the cost of which units of cost of goods available for sale are allocated to the ending inventory and cost of goods sold under the FIFO, average cost and LIFO method.

Question

Donald Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base salary of $1,380 per month. One of the barbers serves as the manager and receives an extra $535 per month. In addition to the base salary, each barber also receives a commission of $3.75 per haircut. Other costs are as follows. Advertising $270 per month Rent $1,010 per month Barber supplies $0.50 per haircut Utilities $160 per month plus $0.15 per haircut Magazines $35 per month Donald currently charges $11.00 per haircut. Compute the break-even point in sales units and in sales dollars. Break-even point Break-even point sales $ haircuts

Answer 1

Question

Chapter 7, Problem 11GI

To determine

Identify the cost of which units of cost of goods available for sale are allocated to the ending inventory and cost of goods sold under the FIFO, average cost and LIFO method.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

Donald Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base salary of $1,380 per month. One of the barbers serves as the manager and receives an extra $535 per month. In addition to the base salary, each barber also receives a commission of $3.75 per haircut. Other costs are as follows. Advertising $270 per month Rent $1,010 per month Barber supplies $0.50 per haircut Utilities $160 per month plus $0.15 per haircut Magazines $35 per month Donald currently charges $11.00 per haircut. Compute the break-even point in sales units and in sales dollars. Break-even point Break-even point sales $ haircuts

Carla Vista Company had $212,200 of net income in 2024 when the unit selling price was $151, the unit variable costs were $95, and the fixed costs were $571,800. Management expects per unit data and total fixed costs to remain the same in 2025. The president of Carla Vista Company is under pressure from stockholders to increase net income by $84,000 in 2025. Assume that Carla Vista Company sells the same number of units in 2025 as it did in 2024. What would the unit selling price have to be in order to reach the stockholders' desired net income, assuming the unit variable costs and fixed costs remain at 2024 levels? New unit selling price $

Eric Greenhills, a partner in the CPA firm of XYZ & Co. LLP, audited the financial statements of ABC. Company. The audit report can be signed by Eric Greenhills XYZ & Co., LLP a Yes Yes b No No c Yes No d No Yes is the correct answer c yes ,no or a yes, yes ??